Cyprus Parliament Due To Vote On Bailout Deal

The Cyprus Parliament is due to vote later in the day on a controversial bailout deal that includes a one-time levy on savings accounts.

The deal worked out by the new Cyprus government and its international creditors on March 16 has sparked anger in Cyprus, which has long made a policy of luring foreign wealth through extremely favorable tax treatment and other incentives.

Banks are closed until March 21 amid fears of massive withdrawals.

Eurozone finance ministers issued a statement late on March 18 saying the burden of the one-time levy should not fall on small savers.

Under the plan, those holding less than 100,000 euros in bank accounts in Cyprus would pay a 6.75 percent tax.

Reports say lawmakers in Cyprus are now working to place more of the tax on those with deposits greater than 100,000 euros.